Getting Yourself Out Of Debt

Getting yourself into debt is not difficult to do. Getting yourself out of debt can take years. Many Americans are thousands of dollars in debt. Credit card companies structure their plans to get people into debt and keep them there as long as possible in order to make money off of them. If you find yourself in this common position do not fret. There are resources out there to help you get out of debt. It takes a lot of work and dedication to get out of debt but it can be done.
Many people turn to credit counseling agencies for help getting out of debt. This is not always a good idea. One of my close friends works for Wells Fargo as a loan officer. She helps people get loans every day and tells me that working with a credit counseling agency can cripple some people. These agencies say that they will consolidate all of your debts into one, small monthly fee. From this monthly payment all of your bills will be paid. Unfortunately some of your bills may not get paid by the due date and you will be charged late fees. In this way, working with a credit counseling agency may in fact put you deeper in debt.
Once you have signed on with a credit counseling service, your credit is frozen in a way. People like my friend at Wells Fargo will have a difficult, if not impossible, time trying to work with you on obtaining a loan. If you are trying to get out of debt you should seriously consider all of your options before signing up with any service designed to help you manage your debt.
If you are not trying to get out of debt at the moment but are concerned about the possibility of being in debt and want to avoid, you must pay yourself first. This means that you should put away at least ten percent from every paycheck into a savings account. This will provide you with a cushion if unexpected or inflated bills come your way.
Another must when trying to stay out of debt is to live within your means. The ability to get your hands on a lot of credit cards does not mean that you should. Most Americans are in financial trouble because of credit card debt. If you can avoid living off of plastic you should be able to stay out of debt. Another biggie: health insurance. Medical bills are a huge cause of debt in this country. Make sure that you and your family are appropriately covered if you want to keep yourself out of debt.